QUESTION 1 On September 25, Olive Oil Distributors receives an order from DeNarda Italian Supermarkets for 125 cases of extra virgin olive oil. Olive Oil accepts the order, which needs to be delivered to DeNarda's warehouse and DeNarda agrees to pay within 30 days of the receipt of the product. Each case of extra virgin olive oil contains 12 bottles at a selling price of $7.50 each. Olive Oil's cost is per bottle is $3. The shipment is received at DeNarda's warehouse on Oct 2 and DeNarda mails a cheque to Olive Oil at the end of the agreed upon payment terms. Olive Oil Distributors used a contact based approach to revenue recognition. Required: a) Identify the five steps of revenue recognition b) Apply case facts to each of the steps in (a) above c) Assuming the criteria are met, record Olive Oil's entries related to these transactions. Canvas check figures #1 - For Sept 25, select the account that is debited: #2 - For Sept 25, select the account that is credited: #3 - For Oct 2, enter the amount you adjusted for the sales side of the transaction: #4-For Oct 2, enter the amount you adjusted for the cost side of the transaction: QUESTION 2 On January 2, 2022 Geek Computers enters into a contract with Bison Protection, a well-established fire protection company to upgrade and install new computers at 65 work stations. As part of the contract Geek Computers also agrees to connect and network all of the computers. Contract details include the following: The total contract price is: The total normal retail price of the computers is: For installation services, Geek Computers would normally charge: For networking services, Geek Computers would normally charge: Each computer cost Geek Computers 67,500 50,400 12,240 9,360 500 The contract requires Geek Computers to deliver the computers by January 25, 2022 and have the installation and networking completed by February 15, 2022. Bison agrees to pay $45,000 upon the delivery of the computers and the final payment was made February 28. Geek Computers uses the contact based approach for revenue recognition. Required: Record Geek Computer's entries related to these transactions. Hint: You need to allocate the transaction price to the goods/services that Geek is providing: Computers, installation, and networking services Canvas check figures #5 - For January 25, for the sales portion of the transaction, select the account(s) that was/were debited: #6-For January 25, for the sales portion of the transaction, select the account(s) that was/were credited: #7-For February 15, enter the amount of the adjustment (enter 0 if no entry) (round to the nearest dollar): #8 - For February 28, enter the amount of the adjustment (enter 0 if no entry) (round to the nearest dollar):